CARACAS, Friday May 17, 2013 | Update

Pdvsa ready to borrow USD 6 billion

Del Pino hopes an agreement with CNPC and Chevron in the next few weeks

The CNPC loan has been discussed for more than one year (File photo)
Friday May 17, 2013  10:47 AM
State-run oil holding Petróleos de Venezuela (Pdvsa) is getting ready to close on financial leasing with oil companies China National Petroleum Corporation (CNPC) and US Chevron, for a total disbursement of USD 6 billion. The loans are sought to fund the expansion of the production capacity of joint ventures Petroboscán and Petrosinovensa. CNPC and Chevron hold a minority interest in such joint ventures.

Eulogio del Pino, the Vice-President of Pdvsa Exploration and Production Division, said on Thursday that the loan agreement with Chevron would be signed "next week."

The agreement, announced in July 2012 and discussed since then, is expected to be signed next Monday, May 20. Chevron's funding comprises USD 2 billion for joint venture Petroboscán, located in western Zulia state.

The terms disclosed in 2012 by Pdvsa contained a long-term funding (the last repayment term has been set at 2025) at a Libor rate of +4.5% without additional costs. It will be used to enlarge the current oil output of 115,000 barrels per day of oil on average at Boscán field and fulfill the remediation plan ordered by the Ministry of Petroleum and Mining.
The end of a cycle

Hundreds of thousands of demonstrators took to the streets of Brazil on March 13 to demand the ouster of embattled President Dilma Rousseff, carrying banners expressing anger at bribery scandals and economic woes. A banner read "We don't want a new Venezuela in Brazil."